ACS - Xerox Shareholder Litigation

Summary

In this Technology industry mergers and acquisition class action litigation settlement hearing, plaintiff shareholder New Orleans Employee’s Retirement System alleged that the proposed merger allows ACS founder Darwin Deason, who is ACS's Chairman and largest (44%) stockholder, to retain hundreds of millions of dollars of value that rightfully belongs to ACS's public shareholders. The plaintiffs assert that Deason's consideration amounts to more than a 50% premium over what ACS's public stockholders would receive. The plaintiff also alleged that ACS Board breached its fiduciary duties by agreeing to a 3.5% termination fee and a no-solicitation provision, essentially blocking competing offers.

The plaintiff was represented by attorney Stuart Grant. The defendant in this case, Xerox Inc. was represented by attorney Kenneth Dorsney.